SINGAPORE TAX SYSTEM

Investors turn to Singapore for establishing their operations for several reasons. The ease of setting up and operating businesses is a prime motivator. Another central determinant is Singapore’s tax regime – well known for its attractive corporate and personal tax rates, tax relief measures, absence of capital gains tax, one-tier tax system, and extensive doubt tax treaties.

TYPES OF TAXES IN SINGAPORE

Income Tax: Chargeable on income of individuals and companies

Property Tax: Imposed on property owners of properties based on the expected rental values of the properties.

Motor Vehicle Taxes: Imposed to curb car ownership and road congestion, this tax is for motor vehicles.

Customs and Excise Duties: Excise duties are imposed on tobacco, petroleum products and liquors.

Good and Services Tax (GST): Tax on consumption. This tax is paid when money is spent on goods and services, including imports.

Betting Taxes: Duties on private lottery, betting, and sweepstakes.

Stamp Duty: Imposed on commercial and legal documents relating to stock and shares and immovable property.

There are also foreign worker levies and the airport passenger service charge. The foreign worker levy is imposed to regulate the employment of foreign workers in Singapore.

SINGAPORE TAX GOVERNING AUTHORITY

The Income Tax Act of Singapore is the governing statute regarding corporate and individual taxation matters.

The Inland Revenue Authority of Singapore (IRAS) is responsible for collecting income tax, property tax, goods and services tax, betting taxes and stamp duties. IRAS plays a role in tax policy formulation by providing policy inputs, as well as the technical and administrative implications of each policy.